Is President Obama Tough Enough? - Democratic Underground

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Thu Apr-23-09 12:47 PM
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Is President Obama Tough Enough?

Testicular Politics: Obama and the Big Dogs
By William Greider
April 22, 2009

The big dogs of banking and finance are playing a rough game of bump-and-run with our president, trying to knock him off balance and demonstrate their dominance. The best names in Wall Street--Goldman Sachs, JPMorgan Chase--pumped out happy talk about quarterly earnings, then announced that they intend to give back the government's money (more than $50 billion, if counted honestly). The crisis, they announce, is over for them. They want to be free of official meddling in their private affairs. The arrogance is breathtaking, even for Wall Street bankers.

For the last couple of weeks, they have poked the kid in the chest and mocked his economic advisors with condescending gestures. Jamie Dimon of the Morgan bank handed Treasury Secretary Geithner a fake check for $25 billion. They threw complicating wrenches into the government's financial rescue plan. Their essential message, crudely colloquial, was intended for Barack Obama : "You don't have the balls to take charge of us."

The question is: Are they right? Obama seems cowed by their bluster. He certainly looks reluctant to take them on in a public way or refute their version of reality. This president wants to govern through public-spirited cooperation. The financial titans play hardball in return. I say "seems" because we do not yet know about Obama and how he will resolve this mess. The administration has been stalling action on the troubled banks, as if it believes in its own wishful forecasts about an early recovery for the economy. The bankers trumped him by announcing, hey, things are already better for us. So back off.

The bankers think they have the president cornered. His rescue plan cannot possibly succeed without much more money--hundreds of billions more--that Congress will be extremely reluctant to provide (Obama hasn't yet had the nerve to ask for it). The bankers' offer to return their welfare checks is a cute gesture, but a bluff. They know Obama's government is committed to save them, whatever it costs. As usual, the big dogs want to have it both ways--take the public's money but promise nothing in return.

He acts as though the old order must be restored with public money, but without forceful government direction. He can call their bluff if he has the courage--shut down a couple of big banks, take control of the system--and the public would cheer. During the campaign, Obama demonstrated he is a great teacher--his political vision changed the country. But we do not yet know if he is a confident political leader willing to use his power against formidable adversaries in order to get his way. Every potential rival is now taking his measure. Weakness would doom him.

Please read the complete article at:

http://www.thenation.com/doc/20090504/greider?rel=hp_picks